Well, it seems like Sony vs. George Hotz has ended pretty much without a bang. Sony announced on its Playstation blog that the two parties have settled the case. Under the settlement, Hotz agrees to a permanent injunction fo his jailbreaking hack, but admits to no wrong-doing. A wise and, dare I say it, mature end to the lawsuit.

If that's the case, they didn't willfully end it gracefully--they were forced to make the decision, because they finally realized they would lose anyway. They did what they probably felt they had to do, not what was best for anyone else. I would hardly call that graceful--especially when it's the company that brought on the suit themselves, and got one subpoena after another that in most cases, should be harder to obtain.

Edit: Either way, it looks like GeoHot finally decided to do what's right and abandon Sony products completely: